DHL to open US$10 million fashion centre in Dhaka

DHL plans to invest US$10 million over the next few years in its new joint venture in Bangladesh to enhance its logistics capabilities in the country.

The announcement comes after DHL signed an agreement with its long-standing partner, Trade Clippers Cargo Limited, to form the new entity, DHL Global Forwarding Bangladesh.

As part of this investment, DHL has launched the "DHL Fashion and Apparel Centre of Excellence" in the capital Dhaka to "capitalise on the fashion logistics industry in South Asia, where the total spent on logistics services is estimated to be worth $3.9 billion per annum," a Deutsche Post DHL statement said.

Amadou Diallo, CEO, DHL Global Forwarding, South Asia Pacific, said: "South Asia remains a key sourcing, manufacturing and distribution base for the global fashion industry and the region offers tremendous growth for the fashion logistics sector. Bangladesh, India, Pakistan and Sri Lanka alone are estimated to account for well over US$2.4 billion in this fast-growing industry."

He said the growth of the Bangladeshi textiles and clothing manufacturing sector in 2009 was estimated at 5.7 per cent, with growth forecast at 6.4 per cent in 2010.

The centre will be DHL's fourth "Fashion and Apparel Centre of Excellence" in South Asia, following the establishment of similar centres in India, Sri Lanka and Pakistan

In addition to offering air freight and ocean freight services, the new joint venture provides customs clearance and other value-added services. Employing over 250 employees, the new entity provides warehousing and distribution for air and ocean cargo and operates more than 21,336 square metres of warehouse space, some of which is located in close proximity to the airport.

(Source: Transport Weekly)